The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-30
UNION .PACIFIC'S BRANCHES
Continuation of MIR. Adams's Testimony
Before the investigating Board.
Interesting Information About Great Rail
way and Numerous Feeders-The Rela-
tionS OF the Branch and Main Lines.

way and Numerous Feeders-The Rela-
tionS OF the Branch and Main Lines.
NEW YORK, April 90. AT the opening OF bust
before the Pacific railroad investigating
mission, to-day, President Charles Francis
Adams, of the Union Pacific. who is the witness
under examination. said he wished to make
statement. He had noticed that there was
dispositon the part of some of the news
papers, in giving account Of his testimony.
to comment disparaeinely on his testimony of
yesterday that he had not examined the books
and accounts of his company He wished to say
that he was no bcok-keeper; he must accept the
statements of his book-keepers He presumed
that Governor Pattlson, while Governor. did not
personally examine the accounts of the Treasury
Department He could not, of course, examine
the books inteigently. He must put his faith
in some one, and take his word for many things.
The examination was resumed. Mr. Adams
was interroeated regarding the branches of the
main road. The Omaha & Nebraska road is an
agricultural road. and as a connection of the
Union Pacific is a profitable property. 1t is
part of the Republican Valley system.
The Oregon Short line runs from Granger
the Union Pacific, and connects with the Oregon
Navigation Companys road at Huntingdon on
the south border Of Oregon. 1t was built in
1881 1t supposed at this time that the
Northern Pacific would not be completed in
many years. This road was built to catch the
Washington and Oregon traffic. which was
valuable: but Mr.. Willard came upon the scene.
ana the Northern Pacific completed first
There was unanmty in the board in favor OF
th road and il was planned in 1870. The road
is 610 miles long, and along the valley of
fnrnnDb n
mountain country. Then the road passes through
lava bed for several hundred miles:
then through q mining country. and then
into an agricultural country about BOISE City.
Only sage brush grows in the lava beds. AL
though there is no agriculture there is, the
sage brush indicates. fertile soil, and agri-
cultural products could be raised Indeed, the
witness regarded that section as the most prom
ising territory in the country. The road cost
between 800. 900 and s25, 900 mile, fully
equipped. It could be huilt for less now. 1t
was built at the rate of S25, 900 mile and stock
the same. The stockholders of the Union Pa
ciic took all of the bonds and one half of the
stock; the other half of the stock is IN the Union
Pacific vault. A 1000 bond and $500 worth of
stock were sold for $1,000 The road is great
feeder to the Union Pacific The Union Pacific
has $50 miles haul on everything that comes
over that road or goes over it. These shipments
include all varieties of transcoutlnental goods.
Governor Pattison said the written statements
must be produced and the witness said the
mission could have them Mr.. Adams said the
Union Pacific derived immense paying bust
ness from the Oregon Short-lne feeder. This
kind of business is the most profitable. The
parent line had simply to hitch an engine to the
train at Gainsboro. end haul $50 miles to Oma
ha and there, without handling the freight,
turn it over to the east bound lines.
E. E. Anderson asked to the peculiar fact
that the Union Pacific had built and purchased
all these branches. and desired to know if pr-
vate citizens could not build these roads or
/ branches.
Mr. Adams replied that that seldom happened,
because a branch road of itself, did not yield a
profit. but IN connection with parent road it
was highly profitable Parent roads generally
constructed branches before there was a local
demand for them. and before they could be made
to pay, even In connection With the main line.
But that matter of Judgment. The
branches were soon made valuable by the parent
| line, and were much stronger than if they were
| operated by an independent company.
The Salina 81 Southwestern road was next
considered. 1t 25 miles south west from Sa-
lima into agricultural district in Kansas Sa-
lima ia 185 miles from Kansas City. and the
road was practically 2l0 mile :iDe 1t has al
ways paid it's expenses, and through the
best wheat-growing country of Kansas. Mr..
| Adams said he would just as soon think of cut
| ting of his own finger he would of dropping
| that branch from the Union Pacific.
The Salt Lake q Western runs into a mining
| country. The commission had better ask Mr..
| Dillon and Bishop Sharp about this road. Mr..
/ Adams thought the road intended to be
| part of tie Utah Central.
The Utah Northern branch runs from Salt
| Lake and Ogden. 466 miles north, through
! Idaho. It connected with the Northern Pacific
| at Silver Bow and Gaipsboro. and built by
| the Mormons, Brigham Young being the en-
eneer of construction. 1t is q matter of ancient
| history The Union Pacific bought it in 1875.
and it was very profitable for years When the
| Northern Pacific was built. 1t was cut in two.
and has not paid since. This yeari it will pay its
| running expenses. The road was built on ree
ious principles. The valley was ignored and the
road was the hill sides 1t passes through
| the lava beds, Yellowstone Park and the pros
| porous mining country, the center of which is
| Butte, and touches the headwaters of the Mis-
souri, The business of the road is taken down
| the Oregon Shert-!ine to point where they
| cross, and reaches the Union Pacific at Granger.
| This and the Oregon were constructed by pri-
vate enterprise. and the Union Pacific came in
later.
+; The examination OF roads operated by the
| Union Pacific was concluded, and Mr.. Adams
was examined to mileage. branch road do
| ing small business needed to make q greater
| profit on each item carried, and for freight
| picked up delivered at the point where the
branch is connected with the main line. it is
given constructive mileage. The parent road
may carry freight 100 miles and the branch road
fifty miles, and yet the branch may be allowed
a constructive mileage of two miles for every
one of actual carriage. Thus the parent and
branch lines would divide the freight equally.
This constructive mileage always worked in
favor of the branches pro rata against the parent
| iaue. ANU tAcTeloIe Dy tntS RUE, Tho uTaucHes
of the Union Pacific took from the general re-
ceipts of that road all that was allowed them rs
constructive mileage. There had been very few
complaints of discrimination of competi-
tors Mr.. Hill. of Colorado, a
smeter. who obtained his ore from
Idaho, once complained that his competitors
could get their from their mines cheaper
than he could. Mr.. Adams had avoided these
| questions, because he could not put his mind on
all things. The rule laid down was that all To-
calites should be treated alike. bar Mr. Adams
had been obliged to depend on his subordinatcs
to have it carried out. Mr.. Adams had never
beard of any proposition to abandon the Union
Pacific to the government except what had been
stated in the newspapers.
Governor Pattson asked if the issue of $40,
O0o.0 600 stock and the guarantee of the ST. Joe &
Grand Island stock, the collateral trust bond OF
1879. had been sanctioned by Congress.
Mr. Adams said Judge Dillon would know
more about that than he did. The written opn
ions OF the Judge and Mr. Bartlett would be
produced. There were Utah. Colorado, Omaha
Montana and Transcon tnental pools. The pools
divided the receipts by percentages. which were
regulated by eommon-sense consideration OF
what would be done by each of the roads if left
to itself, and with all the advantages. The
presidents, general managers and agents were
the representatives in the pool. In the pool the
Pacific Mail cot $50. 900 month. Of this the
Union Pacific paid from quarter to third
The pool went to pieces in 1856 The road car